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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Fundamentls who wrote (59756)	9/30/2000 7:50:24 AM
From: RockyBalboa	Read Replies (1) \| Respond to of 122087

Here is Zeev's answer: Message 14485732 He is right that the cash earned on the put sales provides for some cushion on the downside, while I do not fully agree that it is improving the book value. I don't think that MSFT is that arrogant; much more I think that MSFT sincerely hopes the bull is never abandoned, hence the put writing will be profitable forever. Additionally, if they use cash to buy stock (from the put exercises) they can dry up additional stock supply that way. A crash scenario might only happen with funds and other big stockholders exiting their msft positions en masse...a severe profit/revenue warning could be the kicker. T, LU, INTC and AAPL are examples of a mass exodus so there is a remote chance that it happens to MSFT too. Remains the question which one is most vulnerable: CSCO, ORCL, or MSFT.